Citing digital services tax, the President torpedoes apparent progress on trade
US President Donald Trump has just announced that his team is ending all trade talks with Canada "effective immediately." The announcement came on Friday afternoon via a post on the President's Truth Social page.
"We have just been informed that Canada, a very difficult Country to TRADE with...has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country," the post reads, in part.
The Digital Services Tax (DST) was an issue that possibly put Canadian investors at risk under the tax reforms in the US Big Beautiful Bill Act, which would have seen witholding tax rates on US investments increase for Canadians. The DST requires that US tech companies pay a special tax on online revenues generated in Canada.
At the G7 meeting in Alberta earlier this month, both President Trump and Prime Minister Carney offered optimism that a trade deal could be reached.
“We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,” the President's post continues.
